Historical analysis of football contracts - Essay Example

INTRODUCTION Football contracts focus more on the professional abilities of the players, and the commercial activities that surround the achievements of the players. Football contracts are not guaranteed; rather it is more situations dependent. The situation of players, team management and sponsor companies. If a player in the middle of his agreed contract period fails to achieve laurels and productive results, the team management has the right to release him, and the player loses all the money for the entire session, and further more he loses entire credibility1. Football is considered as the only sport that has strong contract conditions, the contract signed between the team and players is termed one-way contract. The players of the team are trapped in as long as per the desires of the team management. Previously the players were signed a contract for period more than one year, however presently the contract period has reduced to one year. The team management and sponsors have devised effective policy, which has quantified the period of contract solely on the basis of player’s performance and popularity. The team management has formulated a strategy according to which the player will sign one-year contract, and the amount and worth of the contract will be after proper evaluation of player’s performance and past records. Previously, the period of the contract was not too narrow, along with that the player had the option to conduct his normal routine independently, and however presently the players are not appreciated for their non-sports activities. The current team management is highly cautious about the strength and abilities of the players, and reviews those periodically. Therefore the player is considered worthless when his skills diminish, and therefore the player is offered non-guaranteed contract. “The main underlying economic model of European professional sport can be characterized as being one of win-maximization” 2 FOOT BALL AND UK LAWS Certain issues have been drafted and reviewed in the light of UK accession to European Union, certain Sports laws related to Football have been amended much to address the concerns of the football teams. In this regard, Bosman case as proposed and treated by the European Court of Justice in 1996. Union royal belge des societes de football association asbl v. Bosman Case C-415/93 (1996) is considered an important case in the world of European football. As Peter Kenyon, chief executive Manchester United Plc said in an interview in 2000: “I think what Bosman forced you to do was to widen the net and spend a awful lot more on trying to get talent younger and develop it.”3 The case focused on the legality of transfer issues of the team players, and formulates a quota system in this regard. According to the law, only a limited number of foreign players were allowed to play in a club match, therefore all the governing Football organizations including UEFA were legally bind to implement such practice. The case was heard at the European Court of Justice, and the court found in favor of Bosman and against RFC Liege, the Belgium Football Association and UEFA. There were two important decisions: 1. Transfer fees for out-of-contract players were illegal where a player was moving between one E.U. nation and another. From now on only players still serving contracts with their teams could have transfer fees paid for them. 2. Quota systems were also held to be illegal. Club sides are now able to play as many foreigners from other European Union states as they liked (although limits on players from outside the E.U. could still be imposed).4 In this regard, FIFA introduced certain changes, and new transfer regulations were implemented with reference to international players. These were ratified at the annual FIFA council in Buenos Aires in July 2001. ‘The new regulations applied to all contracts signed after 1st September 2001, and provided for: 1. Training Compensation for Players under 23 2. Protection of contracts for the first 2-3 years from unilateral breach by players by a sporting sanction of a four month suspension combined with compensation reflecting the wages and period left on the contract of the player in accordance with national law. 3. Movement for players only in 2 transfer “windows” a season (so contrary to popular belief, the windows were actually a FIFA rather than a Commission idea to protect the industry). 4. The creation of an independent and objective disciplinary and arbitration system to deal with contractual disputes and compensation (with the power to allow movement for contracted players for good ‘sporting’ reasons’. 5 Although transfer fees have reduced since the 2001 regulations, this has been more the result of the economic downturn in the transfer market, and prohibitive fees have still been used to prevent players leaving their clubs (e.g. Fulham’s valuation of Louis Saha to try and prevent a move to Manchester United in the 2004 January Transfer Window) or to raise revenue to reduce debts (e.g. Leeds United’s sale of Jonathan Woodgate in 2003). Indeed, three years after the new regulations were introduced, the only notable impact for British football has been the introduction of transfer windows and the payment of compensation for out-of-contract players under 23 (for example the £2m+ paid by Manchester United for David Bellion in 2003), both of which in effect reduce freedom of movement. Another major case in connection with football in UK has been Eastham v Newcastle United Football Club [1964] where the main issue was clubs ability to control player’s alternative employment at the end of contracts. Justice Wilberforce described this system as: ‘an employers’ system, set up in an industry where the employers have succeeded in establishing a monolithic front all over the world, and where it is clear that for the purpose of negotiation the employers are vastly more strongly organised than the employees. No doubt the employers all over the world consider the system a good system, but this does not prevent the court from considering whether it goes further than is reasonably necessary to protect their legitimate interests.’6 The tussle of football with the law is not something new. It has been there for as long as organized sports have been there. In 1912, another high profile case emerged where a player Harry Kingaby was charged a hefty transfer fee when he moved from Aston Villa to a Southern League club in 1907. it is strange that neither the union nor Kingaby fought the case under restraint of trade doctrine which would have helped in lifting of fee. Lord McNaughten in 1894 had explained what this doctrine stood for: ‘The public have an interest in every person’s carrying on his trade freely; so has the individual. All interference with individual liberty of action in trading, and all restraints of trade of themselves, if there is nothing more, are contrary to public policy, and, therefore, void. That is the general rule. But there are exceptions. Restraints of trade and interference with individual liberty of action, may be justified by the special circumstances of a particular case. It is a sufficient justification, and indeed, it is the only justification, if the restriction is reasonable - reasonable, that is in reference to the interests of the parties concerned and reasonable in reference to the interests of the public, so framed and so guarded as to afford adequate protection to the party in whose favour it is imposed, while at the same time it is in no way injurious to the public.’7 Even though Kingaby was heavily supported by the trade union and the union also wanted to play a game for raising funds to meet the charges, the permission to do so was not granted by the Football Association. The secretary of the union, Alfred Owen, wrote a letter criticizing the association on its stance. This letter further infuriated the officials who wanted Owen removed from his post if permission was to be given. This request was accepted and ‘The Union had thus allowed its secretary to be hounded out of the game, a disgraceful episode and one that could do it no good in the eyes of its members ... [it was now] in virtual bankruptcy and impotent.’8 The UK Football League is preparing to sue the law firm that acted as their legal advisors in the now-collapsed ITV Digital deal. In lieu with this case, the UK Football league has further asked its players not to sign any contract with the ITV Digital; else the UK Football League will take a serious action against such players, which may lead to their disqualification. It is important to understand that by signing a contract with the local UK League teams, the players have to be cautious in signing their other advertisement contracts, which significantly effect their repute and finances. Hammonds Solicitors, which at the time of the deal traded as Edge Ellison, have been accused by the Football League of failing to protect their interests, being negligent and being in breach of contract, however according to Hammods, The proceedings are without merit and will be vigorously contested, and we further ensure protection to our players. The Guardian Newspaper estimates that they are out of pocket by £119m, The league ended up £119m out of pocket after agreeing a £6m settlement with ITV and selling its rights to Sky for a vastly reduced figure of £95m over four years.9 “There will be a lot of people running around looking back at their notes, advice and busy preparing affidavits” said Paul Hosford; partner New Media Law, “It will definitely be one to watch.” The FA Premier League has launched legal proceedings against one of the largest suppliers of foreign satellite equipment to the licensed trade in the UK, and this intends to affect the reputation of those players who are already in contractual agreement with both the parties, either the players have to opt for one else they will definitely lose both the clients. The company in question is called QC Leisure and is a well-established company who specialize in foreign satellite systems and also Art sport cards. United Kingdom and European Union Football leagues have faced certain legal issues with reference to the participation of the team players, and the related affiliation of the players. The reason is often attributed to commodification of sports10. The affiliation of the players has been subjected of worldwide criticism, and in this regard the legal authorities have advised that of the rights of players are unprotected and stated clearly, the players uncertain affiliation can be handled. There are different circumstances, which force the players with out no other option, but to change his affiliation, mostly such cases are with reference to the players injury11. The contract under no circumstances prevents enough safeguards to the interests of the player, and after his unexpected injury, the player is mostly under the threat of disqualification, i.e. all his previous performances are ignored. Considering the case of Charleroi, the player represents worlds richest clubs, and the player and his support i.e. G14, mostly European countries, are demanding compensation towards his injuries. The player Abdelmajid Oulmers was out for eight months after playing against Burkina Faso in November 2004, and there is quest with reference to players payment and his team association. The G14 group represents 18 of Europes most powerful clubs and they are supporting Charleroi in their bid for compensation. Charleroi argued in the Belgian court that the losses of Oulmers scupper their hopes of winning their domestic league last season. Recently European Court of Justice discussed the application of the FIFA rules with reference to the release of players for international matches, the complication with reference to the EU legislation on competition and free movements of workers were thoroughly reviewed. The law of UK and Europe discourage the "unlawful use of club players in national teams"12. The European Football league is therefore in protest with FIFA, both the associations have different priorities. FIFA works for the promotion of Football activities throughout the world, and therefore it encourages its players to play at the required occasions on required level, however for European football commission, it is unfair that the players participation should be motivated irrespective of the dangers and threats to the players. The players exist, as it is commonly called, in a culture of disposability. Players are reported to have shortest average careers as compare with any other professional athletes. The football players are reported to experience injuries during their regular play that puts the average working person into health care unit. The team management loses its ranking, much due to the unexpected injuries of the players, rather than professional incompetence. After the professional careers of the players finishes, the players experience staggering array of physical and psychological consequences against which many of them are insufficiently prepared. All the agreements signed between the team management and the players is then worthless, therefore the statements of the team management with reference to length of a contract is never the truth, and the players know this. Previously, the team management was willing to take risk and responsibility towards the collapse and injury of the players; however in current trend the team management shows their least concern and strange attitude towards the problems of the players. It is because the team management is much under the influence of commercial forces, which desire results and better performance of the team. If the players are not available for certain reasons specific to health care, it has been found that management without any second thought cancel their agreement with the player. The professional competency of the player is discarded only because of the player’s bad health, which is an insult, and unethical practice. Sports law has now become an important field where the relationship between law and sports individuals is discussed and explored.13 ONGOING CONTRACT DEALS The coaches and players sign contracts keeping in view many other factors beside money matters. Previously money was the only issue that was negotiated between the team management and players; there have been past reports that players also use to negotiate over their position in the team. However in present scenario there is must beyond money and position. Contracts are signed annually or after certain negotiable time period, however the contract offers like time care schemes, and insurance schemes. A surprising contract was signed between Norwegian Trond Sollied and his local Manchester based team, ‘The local team wrote a retirement clause into 69-year-old Sonny Lubicks contract extension in January. If he retires before January 2, 2010 Trond Sollied can stay at the school for up to two years as a Euro 8,000-a-year public relations and fundraising consultant’14. The present contents of the contract agreement also include certain provisions on sharing the educational expenses of the player’s family, ‘Leeds’s based local team gets Euro 10,000 a year for family educational expenses’15Previously signed contracts never included such schemes or incentives for players, the current contents of the contract also include offerings such as free air-tickets. ‘Arsenal players are offered 10 economy-fare round-trip tickets a year for personal use or use by his family "to any destination in the Europe’16,. Certain contracts also provide after retirement schemes to its players and coaches, ‘Leeds United players contracted in 2003, are expecting an extension through the 2007 season with automatic one-year rollovers and stipulating that, at its conclusion, players can be nominated for the authority of associate athletics director. Duties will include fundraising and speaking’17 CONCLUSION The time has changed and has influenced the contents of contracts. The player no longer desires series of current benefits and offerings; rather the player is more interested in securing his financial gains during and after their professional career ends. The team management has been under great influence of commercial companies, and because of that reason the commercial activities of the team and players have increased, this has further affected the performance of the players and team spirit. In old days, professional values toppled the rest of the affairs18. Much was emphasized over the health and performance of the team, the activities of the sportsmen were restricted, and they were provided with ample opportunity to provide and offer their utmost efforts towards to achieve success and better results. It is important to understand that, the contract of the players are no longer only the function of their performance rather it also depends upon their popularity. In some of the cases the nomination or contract of the sportsman gets rejected only because of their low popularity, this bias attitude is much depended upon the interest and support of the commercial sponsor. REFERENCES 1. FACT-SHEET ONE: THE BOSMAN CASE, EU LAW AND THE TRANSFER SYSTEM, Football Industry. Retrieved online Jan 8th, 2007: http://www.liv.ac.uk/footballindustry/bosman.html 2. Jodi Upton and Steve Wieberg, College football contracts are dotted with extras and provisions. Retrieved online Jan 8th, 2007: http://www.usatoday.com/sports/college/football/2006-11-16-contract-provisions_x.htm 3. Simon Perry, UK Football League Sue Legal Advisors. September 23, 2004. Retrieved online Jan 8th, 2007: http://digital-lifestyles.info/uk-football-league-sue-legal-advisors-re-itv-digital 4. Andrew Caiger, Simon Gardiner., Professional sport in the European Union: Regulation and re-regulation. The Hague: T.M.C. Asser Press, 2000. 5. Steve Greenfield, Guy Osborn., Regulating Football: Commodificatio,. Consumption and the Law (Pluto Press, London, 2001) 6. Simon. Gardiner, John OLeary, Roger Welch, Mark James., Sports Law. London: Cavendish Publishing Ltd, 2006 7. William Barry Wood., What Price Football,: A Players Defense of the Game. First Edition. Hardback. HOUGHTON MIFFLIN BOSTON 1932. 8. Anthony King - Social Science. The European Ritual: Football in the New Europe. Ashgate, 2003 9. John Sayle Watterson - Sports & Recreation., College Football: History, Spectacle, Controversy. Baltimore, Md.: Johns Hopkins University Press, 2000. 10. Lawrence A. Wenner., Media, Sports & Society: Media, Sports and Society. Newbury Park: Sage Publications 1989. 11. Harding J For the Good of the Game: The Official History of the Professional Footballers’ Association (Robson, London, 1991) Read More